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East Link on track despite Sound Transit budget shortfalls

Sound Transit will not be able to complete the full scope of its $18 billion ST2 plan on time because of revenue shortfalls, but the East Link light-rail project remains on track, Sound Transit officials said Thursday.

South King County will likely take the brunt of the $3.9 billion budget shortfall, potentially losing several key light-rail projects in a realignment of ST2 proposed by Sound Transit CEO Joni Earl.

“We can no longer deliver the entire scope of the ST2 program and all of its elements in the 15-year timeframe from 2009 to 2023,” Earl said at a Sound Transit board meeting Thursday.

The Eastside, which was the beneficiary of more money from the 2008 voter funded plan than any other area ($4.1 billion), received 26.3 percent less tax revenue than expected when the initiative passed. But the largest of the Eastside transit projects remain likely to be completed.

Sound Transit received bad news last month that its projected shortfall of $3.1 million would increase by $800 million.

In a presentation to the Sound Transit board, projects were coded into several categories. The proposed widening and addition of extra car pool lanes on Interstate 90 will be designed and constructed as planned.

East Link was in the second strongest category, which described projects that had the funding in place but some questions and risk factors remained.

“We fully have that project funded as scoped, but we’ve identified East Link for schedule and cost risk,” Earl said.

Sound Transit officials said the budget shortfall and realignment of projects does not stop the proposed downtown tunnel that the city of Bellevue and Sound Transit continue to discuss. For that to succeed, the two organizations need to develop a Memorandum of Agreement (MOA) that sticks to the term sheet that says the cost of the $300 million tunnel will be split down the middle. The tunnel was not part of the plan in 2008, so it was not budgeted for in ST2.

Sound Transit also faces a lawsuit against moving the light-rail east from a coalition that includes Bellevue developer Kemper Freeman. That case was heard in front of the State Supreme Court Sept. 16, and an opinion should be available in several months.

Several Bellevue-related projects were impacted by the change in project structure. Preliminary engineering for the Overlake to Redmond area was put on limited funding, meaning enough money will be left to for studies, while the rest of the cost will be shifted into ST3, the next round of Sound Transit projects. Construction of the Overlake to downtown Redmond portion was not budgeted for ST2; the preliminary engineering was meant to give it a head start in the next round of improvements.

Sound Transit suspended its mission to help find partnerships to operate the BNSF rail corridor, or as an alternative invest the $50 million in bus rapid transit on Interstate 405.

Scroll down for the proposed changes. The Eastside is discussed on page 10.

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